Technical Efficiency, Specialization and Ownership Form: Evidences from a Pooling of Italian Hospitals

31 Pages Posted: 15 Jul 2009

See all articles by Silvio Daidone

Silvio Daidone

United Nations - Food and Agriculture Organization (FAO)

Francesco D'Amico

University of Rome Tor Vergata

Date Written: October 2008

Abstract

We evaluate how the productive structure and level of specialization of a hospital affect technical efficiency by analyzing a six-year panel database (2000/2005) drawn from hospital discharge records and Ministry of Health data. We adopt a distance function approach, while measuring the technical efficiency level with stochastic frontier techniques. After controlling for environmental variables and hospital case-mix, inefficiency is negatively associated with specialization and positively associated with capitalization. Capitalization is typical of private structures which, on average, use resources less efficiently with respect to public and not-for-profit hospitals. Finally, by looking at scale elasticities, we find some evidence of unexploited economies of scale, leaving room for centralization.

Keywords: Stochastic frontiers, Hospital Discharge Records, Hospital Specialization, Distance

JEL Classification: C16, I12, I18, L25, L33

Suggested Citation

Daidone, Silvio and D'Amico, Francesco, Technical Efficiency, Specialization and Ownership Form: Evidences from a Pooling of Italian Hospitals (October 2008). CEIS Working Paper No. 143, Available at SSRN: https://ssrn.com/abstract=1434489 or http://dx.doi.org/10.2139/ssrn.1434489

Silvio Daidone (Contact Author)

United Nations - Food and Agriculture Organization (FAO) ( email )

Viale delle Terme di Caracalla
Rome, Lazio 00153
Italy

Francesco D'Amico

University of Rome Tor Vergata ( email )

Via di Tor Vergata
Rome, Lazio 00133
Italy

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